Accuracy with GDP data calculation method for China
According to the China’s statistics bureau, GDP (Gross Domestic Product) data calculation method has changed. This is a step to adopt international standards and improve the accuracy of the Chinese numbers.
For a long time there had been widespread scepticism about the reliability of the Chinese GDP data. As it seems, the scepticism is caused as the government has sought to tamp market expectations of a protracted slowdown in the world’s second-largest economy. According to NBS (National Bureau of Statistics) stated that the annual growth rate in the second quarter was 7%, the same as the first. However, many economists believe that the pace during the second quarter was lower though.
The combined economic output of China’s provinces has long exceeded that of the national level compiles by the bureau, raising suspicion that local officials have tempered the books.
As NBS stated, China is now calculating GDP based on the economic activity of each quarter to make the data more accurate in measuring the seasonal economic activity and more sensitive in capturing information on short term fluctuations.
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